With the Budget Implementations Act recently passed last week, CWP is concerned about Canada’s lack of action for those living in poverty. Not only did this budget do little for the middle class, it did even less – in fact it did nothing – for the over 4.8 million people in Canada struggling to make ends meet.
The government’s budget failed to show any commitment towards meeting international human rights obligations on social and economic rights. In fact, we are concerned that the effect of the budget will be a continued growth in the income inequality gap.
Overall, it seems to us that this budget was less about demonstrating strong leadership for Canada and more about creating a “balanced budget”. But to create this so-called balance has cost Canadians nearly $2 billion from the government’s contingency fund.
What is the contingency fund?
A contingency fund itself is a privilege that many people in Canada do not have a luxury of possessing.
With the average household debt in Canada continuing to rise with no end in sight, there may be no clearer indication that the government is perhaps out of touch with the needs of people across Canada.
The contingency fund is there as a ‘rainy day’ fund for the government in the event of a crisis. This leaves us wondering: what does this mean when we consider the millions of people struggling day-to-day just to get by, dreaming of a day when they would be able to have their own rainy day fund.
If the purpose of this contingency fund is meant to be used in the event of economic crisis, well isn’t that happening right now? 1 in7 people in Canada are living in poverty. In fact, the United Nations Committee on Economic, Social and Cultural rights has even described homelessness in Canada as a “national emergency”[1].
What if?
The reality is that poverty costs us money. In fact, it is estimated that poverty cost Canada $24 billion annually[2] but we can solve the problem for far less. So what if Canada used this $2 billion from the contingency fund to meet our human rights obligations by addressing poverty?
As a co-lead of the Dignity for All campaign, CWP recently released a model National Anti-Poverty Plan – Dignity for All, that if implemented would address the poverty rate in Canada and reduce the costs associated with it.
So what if that $2 billion dollars was used towards ending poverty and the government decided to use Dignity for All as it’s model? While it would cost far more than a one-time investment of $2 billion, the investment would go a long way in addressing poverty.
So here are some ideas of what $2 billion could buy the government in the fight against poverty:
- For $174 million, the government could reduce child poverty by 15% via investments in the Universal Child Care Benefit, the Child Tax Credit, the Child Fitness Tax Credit and the National Child Benefit. When income security programs are focused on low income families with children it reduces poverty.
- For $1 billion, the government could have addressed the housing crisis unfolding amongst aboriginal communities. According to Aboriginal Affairs and Northern Development Canada, by 2034, there will be a housing shortfall of 130,197 units.[3] An additional 11,855 units will be required to replace existing units, and approximately 10,000 units will need major repairs.
- For $20 million, the federal government could fully reinstitute the 2012 cuts made to the Interim Federal Health Program. Doing so would greatly assist in expanding the health services offered and reduce the need for those living in poverty to turn to costly private sector alternatives.
- The federal government could invest in a food strategy, particularly among First Nations, Inuit, and Metis peoples in Northern Canada. A family of four in an isolated community in Nunavut must spend $395 to $460 a week to buy a basic nutritious diet, this compares to $226 a week that a family would spend in a more southern city like Ottawa.
- The federal government could invest in addressing unemployment and the creation of ‘good’ jobs. With the introduction of the Canada Job Grant Program, $300 million has been diverted from crucial job training programs targeting unemployed and workers outside the EI system. A reintroduction of this funding in coordination with a National Jobs Creation and Training Strategy would serve to greatly address the issue of precarious employment and help many return to the workforce.
- The federal government could invest in safe, affordable and high quality child care. Experts have estimated that society gains two dollars for every dollar spent on a publicly-provided, quality child care program.
So what if? Solving poverty in Canada is not only the just thing to do, it’s the economically smart thing to do. It’s an investment in the nation’s greatest resource. It’s people.
This is a problem that can be solved now and not one that should be left to our grandchildren. It’s time to start now.
James Armbruster is the Communications and Development Coordinator for Canada Without Poverty
Canada Without Poverty is a non-partisan, not-for-profit, charitable organization dedicated to the elimination of poverty in Canada. CWP is here because of your support. We would not be able to continue our work in eliminating poverty without your help. Please consider making a donation to CWP to support our work in ending poverty for everyone in Canada.
[1] http://www.ohchr.org/en/NewsEvents/Pages/DisplayNews.aspx?NewsID=4822&LangID=E
[2] http://news.nationalpost.com/news/canada/canadians-cover-24-billion-a-year-in-poverty-costs-report
[3] http://www.afn.ca/uploads/files/pbs_rc_traverse.pdf
